USD Pressured as Tariff Escalation and Energy Shifts Rattle Markets

Global markets experienced significant turbulence on Monday as escalating tariff tensions, AI intellectual property disputes, and strategic energy policy shifts converged to shake investor confidence. The broad risk-off sentiment triggered sharp moves across asset classes, with Bitcoin dropping to $64,300 and traditional safe-haven currencies gaining ground. The US dollar faced mixed pressure as tariff escalation raised concerns about slowing global trade and potential inflationary pass-through effects, complicating the Federal Reserve's policy outlook. Safe-haven flows benefited the Japanese yen and Swiss franc, while commodity-linked currencies such as AUD and CAD came under pressure amid deteriorating risk appetite. Energy market shifts added another layer of uncertainty, with crude oil volatility feeding into CAD price action. Traders should monitor upcoming trade policy developments closely, as further escalation could deepen USD volatility and widen risk premiums across major pairs. Near-term positioning favors defensive plays, with market participants likely to seek clarity before committing to directional bets in this uncertain environment.